Issue 28 • APR 2012
Global mobile media revenues to touch $150 billion in 2012 2011 was the first year that global consumer spending on media content, apps and services for mobile phones broke through the $100 billion barrier. According to the latest Global Mobile Media Forecast from Strategy Analytics, consumers are expected to increase this spend on mobile media by a further 13.4 % from $121.8 billion in 2011 to $138.2 billion in 2012. In contrast, advertiser spend on mobile media is expected to almost double (85.4 %) from $6.3 billion to $11.6 billion, resulting in the total mobile media economy reaching $149.8 billion in revenue in 2012 – a 17.0 % increase on 2011. The UK mobile media economy is expected to outperform the global 17.0 % growth figure, increasing by 21.9 % to almost £2.5 billion in 2012. UK consumer spending is also expected to outperform the global rate (16.6 % vs. 13.4 %) to just under £2.2 billion although advertiser spend will increase slightly less (81.1 % vs. 85.4 % globally) to £305.4 million. UK consumers are expected to spend £559.6million on apps in 2012 compared to £1.2 billion on data plans/browsing. Consequently, apps would account for a significantly higher share of UK consumer spend (25.8 %) than they would globally (18.9 %). UK in-app ad spend on the mobile web is expected to more than double (108.2 %) compared to 50.6 % for display advertising, consequently, 2012 is expected to be the first year that display ad revenues (£61.1 million) in the UK are overtaken by in-app advertising (£82.9 million). UK revenue related to Social Networking content, apps and services is expected to increase by 22.3 percent in 2012 to £247.0 million - a much higher rate than the 16.1 percent globally. Whilst the lion’s share of consumer spend (60.2 percent) is on data plans and web browsing - making mobile operators the key beneficiaries to the tune of $82.8 billion in 2012, up 9.5 % on 2011 - a key driver of growth is the apps market on smartphones, such as the iPhone and Android devices. Over 23 billion apps were downloaded globally in 2011, increasing by 38 % to over 32 billion in 2012. Apps are now the second largest category for revenues – for both consumer and advertiser spend - and are becoming the key distribution mechanism for media on mobile phones. Apps are expected to account for 18.9 percent of global consumer spend in 2012 – $26.1 billion, up 30.7 % on 2011 – but the strength of the apps ecosystem is also demonstrated by advertiser spend. For example, across the USA and major Western European markets as a whole, revenue from display ads on the mobile web ($934.5 million) has been overtaken by in-app advertising ($1.7 billion). David MacQueen, Strategy Analytics’ Director of Wireless Media Strategies, explains, “Advertisers chase eyeballs so the fact that brands spend more on in-app advertising than the mobile web is a clear sign that apps are what consumers are glued to for an increasing range of activities. In the eyes of many advertisers, web browsing on the smartphone is playing second fiddle to the app economy.” CONTIINUES PAGE 2 >>
THIS MONTH... News
The latest news from the industry, along with analysis of what that news means, including: • AIME initiative paves the way for voice short codes on TV 3 • O2 launches its mobile wallet to an eagre audience 5 • European tablet adoption lags behind rest of world, 6 • Channel 5 and XS2TheWorld take second screening 360º 7 • Momac to build O2 priority ticketing’s mobile loyalty site 8 • m-commerce on tablets driving always on nature of shopping 9 • Oxygen8 launches new voice solution 9
Analysis Editorial Making Connections Paul Skeldon looks at how Connected Summit 2012 is going to be the key place for telemedia 11 SECURITY Apps under attack? Booming m-commerce and app usage sees scammers start to target these services. But help is at hand from PPP and MEF, says Paul Skeldon 13 SHOW REVIEW mGaming and mSports Get a taste for what went on at the mGaming and mSports summits in April –and see the videos! 17 CONNECTED SUMMIT 2012 We take a sneak peek at the event that brings it all together starting on page 19
Directory
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